Telesat (NASDAQ:TSAT) Shares Down 5.9% – Here’s Why

Telesat Corporation (NASDAQ:TSAT)’s share price fell 5.9% during mid-day trading on Tuesday. The stock traded as low as $40.88 and last traded at $42.24. 25,092 shares were traded during trading, a decline of 88% from the average daily volume of 207,923 shares. The stock had previously closed at $44.88.

Analyst Upgrades and Downgrades

Several equities analysts have commented on the stock. Zacks Research downgraded shares of Telesat from a “hold” rating to a “strong sell” rating in a research report on Wednesday, August 19th. Stifel Nicolaus initiated coverage on Telesat in a report on Thursday, July 16th. They set a “buy” rating on the stock. Royal Bank Of Canada began coverage on Telesat in a research report on Thursday, August 27th. They issued a “moderate buy” rating for the company. Scotiabank began coverage on Telesat in a research note on Monday, July 13th. They set a “hold” rating for the company. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Telesat in a research note on Monday, September 14th. Two investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Reduce” and a consensus price target of $33.50.

Telesat Stock Performance

The company has a market cap of $652.56 million, a price-to-earnings ratio of -2.39 and a beta of 2.11. The company has a debt-to-equity ratio of 0.90, a current ratio of 0.17 and a quick ratio of 0.17. The firm has a fifty day simple moving average of $47.05 and a 200 day simple moving average of $46.70.

Telesat (NASDAQ:TSAT) last issued its quarterly earnings data on Thursday, August 13th. The company reported ($7.85) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.71) by ($7.14). The firm had revenue of $57.30 million during the quarter, compared to analyst estimates of $56.11 million. Telesat had a negative return on equity of 15.53% and a negative net margin of 102.62%. On average, sell-side analysts expect that Telesat Corporation will post -11.93 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Telesat

Hedge funds have recently bought and sold shares of the company. TD Waterhouse Canada Inc. lifted its position in shares of Telesat by 18.0% during the 3rd quarter. TD Waterhouse Canada Inc. now owns 63,361 shares of the company’s stock worth $2,938,000 after purchasing an additional 9,653 shares during the last quarter. State of Alaska Department of Revenue acquired a new stake in Telesat in the 3rd quarter valued at approximately $34,000. Engineers Gate Manager LP acquired a new stake in Telesat in the 2nd quarter valued at approximately $591,000. Allied Private Wealth LLC acquired a new stake in Telesat in the 2nd quarter valued at approximately $51,000. Finally, Militia Capital Management LLC bought a new position in Telesat in the 1st quarter worth approximately $560,000.

Telesat Company Profile

Telesat is a Canadian satellite operator that provides communications services to customers worldwide. Founded in 1969 and headquartered in Ottawa, Ontario, the company operates a fleet of geostationary satellites and related ground infrastructure designed to support broadband connectivity, broadcasting, enterprise communications, mobility and government applications.

Telesat serves telecommunications companies, broadcasters, content providers, governments and other organizations across North America and international markets.